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Meta Cuts 1,000+ Reality Labs Jobs, Shutters VR Studios as Focus Shifts to AI

The company pivots after years of steep Reality Labs losses.

Overview

  • Meta confirmed more than 1,000 layoffs in Reality Labs, roughly a tenth of the unit, with virtual‑reality spending scaled back.
  • Internal memos and reporting indicate the closure of Armature, Sanzaru, and Twisted Pixel, while the Supernatural VR fitness app moves to maintenance mode.
  • Augmented‑reality and on‑body devices are being prioritized, with Ray‑Ban smart glasses cited as a stronger commercial performer than bulky VR headsets.
  • Meta is formalizing a Meta Compute organization for large‑scale AI, with Santosh Janardhan and Daniel Gross in leadership and Dina Powell McCormick joining in a senior role.
  • Energy demand and costs are in focus, with reports of nuclear power sourcing and guidance pointing to as much as about $72 billion in 2025 investments.